Brexit news for financial services firms - from 14 December 2019 to 5 January 2020

1. BoE: Financial Stability Report

The latest edition of the Report includes details of the results of the UK banks stress test and reports on the resilience of the UK financial system to Brexit; the UK bank capital framework; FPC’s review of its mortgage market recommendations, vulnerabilities in open-ended funds and developments in payments.

2. HoC: UK progress in rolling over EU trade agreements

This updated HoC Library briefing paper provides a list of EU trade agreements in force and the Government's progress in rolling them over.

3. HMT: Equivalence and exemption determinations

This webpage contains information related to the UK’s framework for equivalence and exemption determinations in financial services, including a link to The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019/541 (S.I. 2019/541, which provides powers for HMT to make equivalence directions for the EU and EEA member states).

4. Extension of ‘No deal’ recognition of UK CCPS under EMIR

Commission Implementing Decision (EU) 2019/2211 of 19 December 2019 amending Implementing Decision (EU) 2018/2031 determining, for a limited period of time, that the regulatory framework applicable to central counterparties in the United Kingdom of Great Britain and Northern Ireland is equivalent, in accordance with EMIR has been published in the Official Journal. Accordingly, ESMA has announced that it has extended the ‘no deal’ recognition decisions for the three CCPs established in the UK to reflect the extension of the expiry date in 2018/2031. In the event of a ‘no deal’ exit on 31st January, the recognition decisions would now expire 12 months after exit (rather than on 30th March this year as provided for in 2018/2031 prior to its amendment).

5. FMLC: Benchmarks Regulation

FMLC has published its response to the EC’s consultation of October 2019. FMLC highlights its concerns with regard to uncertainties in relation to Brexit and the transition from LIBOR.

Other publications from the RegZone Brexit news feed

HoC: Trade in services and Brexit

This updated HoC Library briefing paper considers the complexity of international trade in services (including financial services) and discusses what changes could take place under the different future scenarios.

EC: Regulation in relation to Brexit

Council Regulation (EU, Euratom) 2019/2234 of 19 December 2019 on measures concerning the implementation and financing of the general budget of the EU in 2020 in relation to the withdrawal of the UK from the EU has been published in the Official Journal.